Taboola Raises Profit Outlook After a Slow Quarter

The Tip Desk · August 5, 2026 · 3 min read

Second-quarter revenue was $476.8 million, below the $492 million to $505 million range issued after the first quarter, as the company lifted full-year ex-TAC gross profit and Adjusted EBITDA targets.

Taboola.com (TBLA), a global leader in delivering performance at scale for advertisers, reported second-quarter revenue of $476.8 million, up 2.4% from a year earlier, a slower pace than the 9.1% increase in the first quarter.

The result fell short of the $492 million to $505 million range the company had issued after the first quarter. Chief Executive Adam Singolda said the company delivered another quarter beating its ex-TAC gross profit and Adjusted EBITDA guidance and is raising full-year guidance for both metrics.

Gross profit was $139.5 million. Ex-TAC gross profit, which adds back other cost of revenues and non-cash amortization of the commercial agreement asset, was $192.4 million, up 11.8%. Net income was $4.3 million, or $0.01 a share on a diluted basis, versus a net loss of $4.3 million a year earlier.

Adjusted EBITDA was $55.5 million, up 22.8%, after a first-quarter Adjusted EBITDA decline of 25.7%. Adjusted EBITDA margins expanded to 28.8% from 26.2% a year earlier, after 15.9% in the first quarter. The company recorded $5.97 million of workforce-reduction expenses in April 2026, excluded from Adjusted EBITDA, and $1.1 million of litigation costs as a plaintiff.

Cash flow from operations was $31.3 million, compared with $47.4 million a year earlier. Free cash flow was $17.3 million. Cash and cash equivalents were $133.1 million at June 30, 2026. Trade receivables were $316.7 million. The revolving credit facility balance was $72.0 million.

For the third quarter of 2026, the company currently expects revenue of $460 million to $473 million, gross profit of $148 million to $152 million, ex-TAC gross profit of $184 million to $190 million, Adjusted EBITDA of $51.5 million to $56.5 million, and Non-GAAP net income of $38 million to $42 million.

Full-year 2026 revenue guidance was lowered to $1,930 million to $1,956 million from the prior range of $2,006 million to $2,062 million issued after the first quarter. Full-year ex-TAC gross profit guidance was raised to $772 million to $783 million from $760 million to $781 million. Full-year Adjusted EBITDA guidance was raised to $228 million to $240 million from $222 million to $240 million. Full-year Non-GAAP net income guidance was lowered to $168 million to $176 million from $167 million to $191 million.

Singolda said momentum with Realize, the addition of Fox News and other strategic wins are further strengthening Taboola’s position as a leader in performance advertising and advancing its vision to build the leading platform for the Open Web. Taboola said Realize reaches over 600 million daily active users across some of the best publishers in the world, including NBC News, Yahoo, and OEMs such as Samsung and Xiaomi.

The company is not able to provide guidance for projected net income, the most directly comparable GAAP measure, because certain elements of net income, including share-based compensation expenses, are not predictable due to high variability.